5. Equilibrium in the market for goods requires that output be equal to demand: Y:C(YT)+I(r)+0, where C is linear. To answer the questions below, abstract from the money market. (a) Calculate the tax multiplier. That is, calculate %. Is this multiplier higher or smaller than the government-purchase multiplier? (b) If the government decreases taxes by 5 units (AT : 5), what is the change in equilibrium income in the goods market? Explain how your answer depends on the 1M PC . (c) Illustrate your answer to (b) graphically. (d) Suppose now that the government increases expenditures by 6 units (AG : 6) and this increase is nanced fully by an equal increase in taxes (AT : 6). By how much does output change? Interpret. (e) Suppose now that the consumption function is: C = a + b0\" T) and that everyone believes that a recession is coming. In anticipation of the \"oncoming\" recession everyone decides to spend less now and save more; thus, the parameter a in the consumption function above declines. What happens to equilibrium income and savings in response to this increased thriftiness